Ahead of the publication of the Fed minutes this evening and the meeting of central bankers in Jackson Hole, USA, on Thursday, a certain degree of caution can be felt, according to market reports.
The euro/franc pair is trading at 0.9507 around midday on Wednesday, after 0.9499 in the morning. The dollar/franc pair also barely moved, recently at 0.8547, compared to the morning (0.8544). And there was hardly any movement between the euro and the dollar either: the pair is currently trading at 1.1122.
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Commerzbank sees the franc as currently caught between the expectation of an interest rate cut by the SNB on the one hand and the flight to safe havens on the other. After the turmoil and the sell-off on the stock markets, the situation on the currency front has now calmed down somewhat. In the near future, a certain weakness in the franc is to be expected due to the lower interest rates, but this should not go too far. Both the ECB and the US Federal Reserve are also expected to cut interest rates in September.
awp-robot/dm/uh
Zürich (awp)
